A Newbie’S 5 Step Guide On How To Flip Houses

Most people think of toppling things over and turning things upside down when they hear real estate investors say that they flip houses for a living. In real estate investment, the term flipping is not taken in a literal manner. However, the deals and transactions of this area of investment happen in such a short time which led to this quirky and interesting term used by the people in the know.

The process involved in finding and flipping properties is pretty easy to understand in general. For new and aspiring investors who want to know more about this concept, here are the basic steps on how to flip houses:

  • Contact the Owner. The very first step to do after finding an investment property is to locate and talk to its owner. Methods of locating a property’s owner include skip traces and Web searches. Once an investor gets the chance to talk to the owner, one of the important things to discuss is the extent of the repairs needed for the property, the number of rooms and other features, and the owner’s selling price.
  • Present an Offer. After having a talk with the owner, Real estate investors present an offer for the property. The offer will vary depending on the home’s condition and what the investor plans to do with it.  Wholesalers would present the owner a contract to sell or lease the property. Meanwhile, investors who fix and flip houses for a living are likely to offer a price that is way below the property’s value.
  • Start the renovations. For investors who do rehabbing, they start to make the repairs needed for a property once they purchase it and get the necessary permits ready. The renovations done can range from simple repairs of a home’s facade to tearing down the structure in order to modify it completely.
  • Commence a marketing campaign. Wholesalers as well as rehabbers who are done with the renovation phase can start advertising and selling the house. Methods of selling a property include classifieds, multiple service listings and outdoor advertisements.
  • Execute an Exit Strategy. After finding a buyer for a property, real estate investors who flip houses for a living always know how to close their deals. They should be able to hand over a home’s closing details to an attorney and the title company. Afterwards, they get an assignment fee as a profit for flipping the property.]

This is just a basic guide of flipping homes for beginners. For those interested in finding listing for homes that are ready for rehabbing or wholesaling, just visit Rehablist.com.

Article Source: http://www.articlesbase.com/strategic-planning-articles/a-newbies-5-step-guide-on-how-to-flip-houses-1905391.html

About admin